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If there is no relationship between the rates of return of two assets over time, these assets are (D) uncorrelated.

What are rates of return?

  • A rate of return (ROR) is the net gain or loss of an investment over a given time period expressed as a percentage of the initial cost of the investment.
  • When you calculate the rate of return, you are calculating the percentage change from the beginning to the end of the period.

Assets:

  • An asset is a resource with monetary value that an individual, corporation, or country owns or controls with the expectation of future benefit.
  • A company's assets are reported on its balance sheet.
  • They are divided into four categories: current, fixed, financial, and intangible.
  • Uncorrelated assets are those that have no relationship between their rates of return over time.

Therefore, if there is no relationship between the rates of return of two assets over time, these assets are (D) uncorrelated.

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The correct question is given below:
If there is no relationship between the rates of return of two assets over time, these assets are

A) positively correlated.

B) negatively correlated.

C) perfectly negatively correlated.

D) uncorrelated.

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